Internet of Things Services 2023 Market Insights™

May, 2023


Report Summary

This report identifies key demand-side trends in the IoT services space to assist companies in their IoT digital transformation journeys. It provides an overview of key IoT trends and enterprise challenges that Avasant considers important to highlight.

Why read this Market Insights?

Over the past few years, the IoT space has moved to mainstream adoption. The technology continues to garner enterprise interest and investments driven by growing IoT devices in homes, businesses, and industries, with emerging use cases such as autonomous vehicles, smart cities, sustainability, and Industry 4.0. Furthermore, advancements in technologies such as 5G, edge computing, and digital twin have contributed to the expansion of IoT services, driving new use cases and opportunities. Enterprises are outsourcing their IoT services to fast-track IoT investments, reduce upfront costs, and derive meaningful outcomes.

The Internet of Things Services 2023 Market Insights™ aids enterprises in identifying important market trends and challenges for their IoT transformation projects.


The industry insights and recommendations presented are based on our ongoing interactions with enterprise CXOs and other key executives, targeted discussions with service providers, subject matter experts, and Avasant Fellows, along with lessons learned from consulting engagements.

Table of contents

About the report (Page 3)

Executive summary (Pages 4–7)

    • Defining the Internet of Things
    • Key enterprise IoT trends shaping the market
    • Avasant recognizes 25 top-tier providers offering IoT services

Demand-side trends (Pages 8–17)

    • IoT production projects continue to rise with fewer new clients.
    • Connected infrastructure saw significant growth driven by smart city initiatives, including urban mobility.
    • Digital twins in IoT are fast becoming enablers of innovation and performance across industries.
    • IoT implementation has become crucial for sustainability outcomes.
    • Enterprises (about 39%) will boost their IoT investments in 2023 as they expand their digital strategies.

Key contacts (Page 18)

Read the Research Byte based on this report.

Please refer to Avasant’s Internet of Things Services 2023 RadarView™ for detailed insights on the service providers and supply-side trends.